The process of assigning indirect costs to products, services, people, business units, etc., is: Multiple Choice cost object. cost pool. cost allocation. opportunity cost. Classifying a cost as either direct or indirect depends upon: Multiple Choice whether an expenditure is unavoidable because it cannot be changed regardless of any action taken. whether the cost is expensed in the period in which it is incurred. the behavior of the cost in response to volume changes. the cost object to which the cost is being related. Prime cost consists of direct materials combined with: Multiple Choice direct labor. manufacturing overhead. indirect materials. cost of goods manufactured. The three basic elements of manufacturing cost are direct materials, direct labor, and: Multiple Choice cost of goods manufactured. cost of goods sold. work in process. manufacturing overhead. The costs of direct materials are classified as: Multiple Choice Choice A Choice B Choice C Choice D The cost of direct labor will be treated as an expense on the income statement when the resulting: Multiple Choice payroll costs are paid. payroll costs are incurred. products are completed. products are sold